If anyone has done this before in California, please help.
this is my first one that I get approved from the bank and am waiting on another one.
I have the property in a land trust, opened escrow with title company, and escrow
officer is saying if I flip, lender has to be disclosed. Is this true?
Also she wants to have seller deed back to his name for title insurance purposes???
Does the title company have to see the assignment of beneficial interest?
If you have done this properly, your Trustee now holds title to the property, not you, and YOU are NOT the Trustee, you are the sole Beneficiary. Your warranty deed transferring title to your Trustee is NOT a sale. You already have title insurance which you obtained when you purchased the property. The warranty deed is the extent of the documents your title company needs to see.
You now instruct your Trustee to sell it to a buyer with a normal financed deal. Lenders do this all the time. There is only one seller (trust), one buyer (credit investor/partner), one sale, and one appraisal. There is no reason for the title insurance company to see the assignment of beneficial interest.
There is no double contracting, no simultaneous closing, no assigning your contract, no acquiring or selling of an option, no private or hard money, no loan fraud (everything is fully disclosed because of your use of the trust), and your down payment and improvement costs, if any, come back to you at closing!
Yes, the trustee now holds title to the property and it is a 3rd party (not me).
I am in the sole beneficiary. The property got grant deeded the day the trust was signed
back on July 25th and I recorded the grant deed.
I am still a little unclear on the title insurance, since I did not get that before deeding it to the
trust.
It doesn’t require a new title policy to place your own property into a Revocable Living Trust such as a land trust.
Thanks truspro for your help.
How is this flip doing and what if anything did the the title company do in respect to the Land Trust issues they had?
I wasn’t clear on whether or not you got title ins when you placed in a Trust?
Happy closing.
Well, most title won’t even insure these type of transactions due to the California foreclosure laws. They are afraid they could get sued. I did not get title insurance before it got grant deeded to the trust. Is that what you normally do OCshortsale?
At this point I have a contractor that wants the property and is willing to pay me outside of escrow.
We should be closing by the end of this month.
Any help would be greatly appreciated. thanks.
I am in Central California—if anyone knows a title company that insures these type of transactions–I would appreciate it if you share that information.
In Chicago it has become impossible to find title company who will fund the deal with End Buyer money. They want the first closing to be funded. If anyone knows of an underwriter in Chicago area that will do this, I would greatly appreciate letting me know.
Thank you! :cool
I have a quick question…When doing a short sale I under stand you have a P&S with the seller…a 2nd one that goes to the lender with the discounted price you will be offering along with a HUD1…now on those docs the ones you send to the lender. Is the buyer abc land trust or is it the beneficiary of the trust ie. Investment One LLC?